View Full Version : Store cards in America: Some questions.

03-29-2004, 05:04 PM
In the UK store cards are big business. All of these cards charge an APR well above the 4% you would pay on a bank loan and most of them charge a lot more than the 14-15% most credit cards charge. Some of the store cards charge more than 30% APR (http://www.mirror.co.uk/news/allnews/tm_objectid=14067608&method=full&siteid=50143&headline=store-cards-discredited-name_page.html).

Do you have store cards (http://www.uk-online-credit-cards.co.uk/glossary/store_card.html) in America?

What sort of APR do they charge in America?

03-29-2004, 05:23 PM
Sure do. Off the top of my head, I know The Gap, Chevron gasoline, and Target have company-branded credit cards.

03-29-2004, 05:33 PM
Most of the ones rjung mentioned are not really store cards in the sense that you're thinking of, but they're Visa cards with that store's logo on the card and can really be used anywhere that Visa is accepted (ie, everywhere). Generally, these get you some kind of reward from the issuing company, and the APR is a typical credit card rate (13-15%, in that area)

In addition to those, department stores such as Sears issue their own cards that can be used only in Sears itself and on a few other selected things as well (used to be able to bill your AOL payment to Sears, for example). These APRs are usually in the neighborhood of 20%.

03-29-2004, 06:03 PM

In fact, most chain stores have a Store card (that can only be used at the store), and many have the Store Visa/Mastercard (that can be used anywhere, but earn points for the Store). You can choose which one you get.

My first credit card was a store card - they didn't ask for pesky things like "income" or "credit history" the way major credit cards did at the time. Usually, they'll give you a discount on purchases and a coupon the day you sign up - (plus special sales days, if you use the Store card to make the purchase) so I've acquired more than a few just to take 10% off here or there.

I'm pretty sure the APRs are in the low 20%s, as opposed to the low - mid 10%s on normal cards.

03-29-2004, 07:59 PM
Store cards aren't always a bad deal. My Best Buy card has 90 days same as cash on all purchases - if I pay off each item within 90 days of the purchase date, they waive the finance charges. The card's APR is around 20%, but I've never actually paid interest on anything I bought with it.